Paul Romer is worried about Macroeconomics… and what others think about his worries…

Paul Romer’s latest paper “The Trouble with Macroeconomics” is definitely one of the hottest topic in the economics blogosphere. The central message is that Romer thinks the state of Macroeconomics has been going backward ever since the Real Business Cycle Theory and DSGE model took the center stage of macroeconomics. Accroeding … …Click to read the whole thing…




Why Negative Rate is a better policy tool to Higher Inflation Target? Bernanke Explains…

In his latest Brookings blog post “Modifying the Fed’s policy framework: Does a higher inflation target beat negative interest rates?”, Ben Bernanke compares two policy tools central banks can use to stimulate the economy – the hotly discussed idea of Raising Inflation Target and Negative Interest Rate. The TLDR answer … …Click to read the whole thing…




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John Cochrane on FTPL and the State of Macroeconomics

This is the fourth installment of our interview series “Where is the General Theory of the 21st Century?” In this article, we continue our discussion with Professor John Cochrane, Senior Fellow of Hoover Institution, Stanford University. Here he talks about Fiscal Theory of Price Level and how can we apply … …Click to read the whole thing…




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John Cochrane on What is Neo-Fisherian?

Welcome! This is the third installment of our interview series “Where is the General Theory of the 21st Century?” “Where is the General Theory of the 21st Century?” is an interview series with the aim to ask top economists a very important question: “Why haven’t economists come up with a … …Click to read the whole thing…




Scott Sumner on Market Monetarism and Macroeconomics

This is the second installment of our interview series “Where is the General Theory of the 21st Century?“. In this second installment, we continue our discussion with Prof. Scott Sumner, the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University, where he is the … …Click to read the whole thing…




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Scott Sumner on Midas Paradox and the Great Depression

Welcome! This is the first installment of our interview series “Where is the General Theory of the 21st Century?” “Where is the General Theory of the 21st Century?” is an interview series with the aim to ask top economists a very important question: “Why haven’t economists come up with a … …Click to read the whole thing…